BCOS-184 UNIT 3 TECHNOLOGY USED IN E-COMMERCE ignou bcomg books pdf

 

UNIT 3 TECHNOLOGY USED IN E-COMMERCE Design Considerations for E-Commerce

Design of E-Commerce Website

The design of an e-commerce website is crucial for a successful online business. Here are the key considerations:

1. Speed and Responsiveness: The website should load quickly and be responsive across all devices (desktops, tablets, smartphones). This ensures a smooth user experience and reduces bounce rates.

2. Intuitive Navigation: Customers should be able to find what they need effortlessly. Clear, well-organized menus and search functionalities enhance usability.

3.2.2 Easy Navigation

Easy navigation is vital for retaining customers. Here’s how to achieve it:

1. Clear Menu Structure: Ensure that categories and subcategories are well-defined and easily accessible.

2. Search Functionality: Implement a robust search engine that provides relevant results based on customer queries.

3. Product Descriptions: Detailed and accurate product descriptions help customers make informed decisions and reduce the chances of abandonment.

Key Design Considerations for E-Commerce Success

1. Simple Checkout Process: The checkout process should be straightforward and user-friendly. Reduce the number of steps and clicks required to complete a purchase. Offer multiple payment options such as net banking, digital wallets, credit/debit cards, and COD (Cash on Delivery). Clearly display shipping charges, taxes, and any other fees to avoid surprises at checkout.

2. Logistics Management: Efficient logistics are crucial for order fulfillment. Ensure that your logistics system can handle both local and international orders effectively.

3. Good Product Pages:

o High-Quality Images: Use clear, high-resolution images

of products from multiple angles.
o Simple Descriptions: Write concise and informative

product descriptions.
o Customer Reviews: Incorporate a review system to build

trust and assist in decision-making.

Essential Technology Features Required

1. Ubiquity: E-commerce should be accessible from anywhere and at any time, across various devices with internet connectivity.

2. Global Reach: E-commerce technology removes national boundaries, allowing businesses to access a global market.

3. Universal Standards: The internet uses universal standards that facilitate seamless data exchange between different technologies and platforms.

4. Richness: E-commerce supports rich content such as videos, animations, and interactive ads, enhancing the customer experience.

5. Interactivity: Enables two-way communication between merchants and customers, facilitating better engagement and feedback.

6. Information Density: E-commerce reduces costs associated with information management and increases the accuracy and usefulness of data.

7. Personalization: Tailors product recommendations and marketing messages based on user behavior, interests, and past purchases.

Difference Between App-Based and Web-Based Business

 1. Devices Used:

• App-Based: Handheld devices like smartphones and tablets.

• Web-Based: Computers and laptops.

2. Reachability:

• App-Based: Higher reach with push notifications; users are engaged even on the go.

• Web-Based: Limited to users actively visiting the website. 

• 3. Platform:

• App-Based: Accessible through app stores (Google Play, Apple App Store) and native apps.

• Web-Based: Accessible through web browsers. 

• 4. Payment Gateway:

• App-Based: Supports mobile banking, net banking, credit/debit cards, digital wallets, and COD.

• Web-Based: Similar payment options, but typically fewer mobile-specific features.

  5. Mobility:

• App-Based: High mobility; users can shop and transact from anywhere with internet connectivity.

• Web-Based: Limited mobility; users shop primarily from computers or laptops.

  6. Privacy and Security:

• App-Based: Higher privacy and security risks due to potential malware and app vulnerabilities.

• Web-Based: Generally more secure, with fewer privacy concerns related to malware.

  Conclusion

  The choice between app-based and web-based e-commerce depends on your business goals and target audience. While mobile apps offer greater convenience and reach, web-based platforms remain a strong option with broader accessibility and security advantages. Both

approaches should prioritize user experience, speed, and secure transactions to effectively engage customers and drive sales.

Building, Designing, and Launching an E-Commerce Website

1. Importance of an E-Commerce Website

Building an e-commerce website is a significant step for any business aiming to expand its reach and strengthen its reputation. A well- designed e-commerce site enhances brand visibility both nationally and internationally, leveraging the internet's wide reach to facilitate online transactions. The benefits of e-commerce are substantial, making it a primary choice for new market entrants and existing businesses looking to modernize their operations.

2. Understanding E-Commerce Models

E-commerce models vary based on business type and goals. Different models serve different needs, and no single model fits all businesses. Understanding the specific requirements of your business helps in selecting or customizing the appropriate e-commerce model.

3. System Development Life Cycle (SDLC) for E-Commerce Solutions

The SDLC is a structured approach to developing e-commerce solutions. It includes several key phases:

1. System Analysis/Planning:
o Objectives Identification: Define the goals of the e-

commerce website.
o Requirement Gathering: Collect and document system

requirements to create a System Requirements

Specifications (SRS) document. 2. Systems Design:

o System Modeling: Design the system architecture, including the graphical user interface (GUI) and database structure.

3. Building the System (Development):

o Execution: Transform the design into a functional e- commerce website through coding and development.

4. Testing:
o Quality Assurance: Conduct thorough testing to ensure

the website performs well. This includes testing for speed,

connectivity, and transaction accuracy. 5. Publish/Implementation:

o Hosting: Choose a hosting provider, finalize the hosting contract, and upload the website to the internet server.

4. Agile Methodology in E-Commerce Development

The Agile methodology has become increasingly popular for e- commerce development due to its flexibility and iterative approach. It allows for continuous improvement and adaptation based on client feedback.

Advantages of Agile Methodology:

• High Speed: Agile processes lead to faster development cycles compared to traditional methods.

• Better Product Quality: Continuous testing and feedback improve the website's quality throughout development.

• Flexibility: Agile adapts to changing requirements and goals, making it suitable for dynamic environments.

  5. Hardware Requirements

  Choosing the right hardware is crucial for supporting e-commerce operations. Key considerations include:

• Server Type: Determine the type of server needed based on the website’s size, purpose, and anticipated traffic.

• Scalability: Ensure that the hardware can handle growth in traffic and future expansion.

• Operating System: For example, Microsoft’s Internet Information Server (IIS) is often used with Windows servers, while Apache is a popular choice for UNIX-based systems.

6. Software Requirements

E-commerce sites require specific web server software to handle customer requests:

• Web Server Software: This handles HTTP requests and serves HTML/XML pages. Popular options include Apache for UNIX- based systems and IIS for Windows-based systems.

• Development Technologies: Websites are built using technologies like HTML, PHP, JavaScript, and databases. Ensure compatibility with your chosen web server software.

  7. Outsourcing vs. In-House Development In-House Development:

• Advantages: Greater control over the development process and integration with existing systems.

• Challenges: High risk, requires a skilled team, and may involve significant upfront costs.

  Outsourcing:

• Advantages: Access to experienced developers, reduced risk of failure, and potential cost savings.

• Challenges: Less control over the development process and potential communication barriers.

  Choosing between in-house development and outsourcing depends on your business’s specific needs, resources, and risk tolerance.

  Conclusion

  Building and launching an e-commerce website involves several critical steps, from planning and design to development and testing. The SDLC methodology provides a structured approach, while Agile methodology offers flexibility and iterative improvement. Proper selection of hardware and software is essential for optimal performance. Finally, the choice between in-house development and outsourcing should align with your business goals and capabilities.

With careful planning and execution, a well-designed e-commerce website can significantly enhance your business’s online presence and success.

Architectural Framework and Network Infrastructure in E- Commerce

3.7.1 Architectural Framework of E-Commerce

The architectural framework of an e-commerce system defines the layered structure necessary for building, managing, and integrating various e-commerce functionalities. It aims to streamline the integration of data and software to enhance the performance and efficiency of e-commerce applications. The framework typically consists of the following six layers:

1. Applications Layer Services:
o Functionality: Encompasses customer-to-business (C2B),

business-to-business (B2B), and intra-organizational

services.
o Examples: Online shopping carts, CRM systems, and

order management systems.
2. Brokerage Services, Data or Transaction Management:

o Functionality: Manages order processing, payment processing, and transaction interactions.

o Examples: Payment gateways, transaction processing systems.

3. Interface and Support Layers:
o Functionality: Provides directory support functions and

interactive catalogs.
o Examples: User interfaces, search engines, and catalog

management systems.
4. Secure Messaging, Security, and Electronic Document

Interchange (EDI):
o Functionality: Ensures secure communication through

encrypted emails and supports EDI for data exchange. o Examples: SSL/TLS for secure communication, EDI

standards for data interchange.

5. Middleware and Structured Document Interchange: o Functionality: Facilitates communication and data

exchange between different systems and applications.
o Examples: Enterprise service buses (ESBs), middleware

platforms.
6. Network Infrastructure and Basic Communications

Services:
o Functionality: Underpins the physical and virtual

networks required for data transfer and communication. 

o Examples: DNS, web servers, and network protocols.

The integration of these layers creates a robust e-commerce system that supports efficient data management and seamless interaction across different components of the application.

3.7.2 Domain Name System (DNS)

The Domain Name System (DNS) is crucial for translating user- friendly domain names into IP addresses that computers use to identify each other on the network. This system functions like a phone book for the internet:

• Example: When a user types www.example.com into their browser, DNS resolution translates this domain name into an IP address (e.g., 192.0.2.1). The browser then uses this IP address to access the website.

3.7.3 Web Server Implementation

Web servers are essential for handling client requests over the World Wide Web. They can be implemented using various server software, each with unique features:

1. Apache HTTP Server:
o Characteristics: Long-established, highly configurable,

widely used.
o Use Case: Serving static and dynamic content.

2. Nginx:

o Characteristics: Known for high performance, can also function as a reverse proxy and load balancer.

o Use Case: Handling high traffic, optimizing content delivery.

3. Caddy:
o Characteristics: Focuses on modern protocols like

HTTP/2 and HTTPS.
o Use Case: Simplified configuration and automated

SSL/TLS management.

3.8 Impact of Emerging Technologies on E-Commerce

Emerging technologies are reshaping the e-commerce landscape by introducing innovations that enhance operational efficiency, customer experience, and business strategy. Key technologies include:

1. Mobile Devices and Mobility:
o Impact: Mobile devices have revolutionized e-commerce

by enabling consumers to shop, pay bills, and access services on the go. Companies focus on optimizing UI/UX for mobile platforms to improve user engagement and satisfaction.

2. Big Data and Big Data Analytics:
o Impact: E-commerce companies handle vast amounts of

data. Big Data technologies process and analyze this data to uncover trends, customer preferences, and market opportunities. AI/ML algorithms further enhance predictive analytics and decision-making.

3. Artificial Intelligence (AI) and Machine Learning (ML):
o Impact: AI and ML are used for personalization, real-time intent targeting, voice assistants, recommendation engines,

and chatbots. These technologies improve user experience by providing tailored recommendations and efficient customer support.

4. Internet of Things (IoT) and Digital Twins:
o Impact: IoT devices and RFID tags optimize inventory

management, enhance warehouse automation, and improve

supply chain visibility. Digital twins offer real-time

monitoring and management of products and processes. 5. Cloud Computing, Edge Computing, and Fog Computing:

o Impact: Cloud computing provides scalable and cost- effective storage and processing solutions. Edge and fog computing bring processing closer to data sources, reducing latency and improving performance for real-time applications.

6. Blockchain:
o Impact: Blockchain offers secure, transparent, and

immutable transaction records. It enhances supply chain tracking, reduces transaction costs by eliminating intermediaries, and provides a decentralized, user- controlled network.

7. Industrial Revolution 4.0 (IR 4.0):
o Impact: IR 4.0 integrates advanced technologies like AI,

IoT, and cloud computing to transform manufacturing and business processes. It emphasizes interconnectivity and real-time data exchange, driving innovation and efficiency.

These emerging technologies collectively contribute to the transformation of e-commerce by enabling more efficient operations, enhanced customer experiences, and innovative business models.

Digital Platforms and E-Commerce

The convergence of emerging technologies has profoundly influenced e-commerce, leading to the development of sophisticated digital platforms. These platforms differ significantly from traditional online stores, employing advanced technologies and novel revenue models. Here's an overview of how digital platforms are shaping e-commerce.

What are Digital Platforms?

Digital platforms are complex, cloud-based frameworks that enable users, providers, and collaborators to engage in various activities and create value. They serve as ecosystems that support a wide range of interactions, often setting industry standards. Key characteristics include:

• Cloud-Based Implementation: Digital platforms leverage cloud infrastructure for scalability and accessibility.

• AI/ML Integration: These technologies are used to personalize user experiences and predict future actions based on historical data.

• Big Data Utilization: Platforms handle vast amounts of data, which is analyzed to offer personalized recommendations and targeted advertisements.

• APIs: Application Programming Interfaces (APIs) facilitate communication between different systems and data sources.

  How Platforms Work

  Digital platforms collect and analyze user data through cloud-based systems. Machine Learning (ML) algorithms process this data to predict user preferences and behaviors. The predictions are then used to personalize content and advertisements, enhancing user engagement and satisfaction. This process involves:

  1. Data Collection: All user interactions and transactions are recorded and stored in massive databases.

  2. Data Analysis: ML algorithms analyze the data to identify patterns and make predictions.

  3. Personalization: APIs deliver customized content and recommendations based on the analyzed data.

  Types of Digital Platforms

  Digital platforms can be categorized based on their functions and services:

• Sharing Economy Platforms: Facilitate the exchange of goods and services (e.g., Airbnb).

• Development Platforms: Provide tools and environments for software development (e.g., GitHub).

• Crowd-Sourcing/Crowd-Funding Platforms: Allow users to contribute to projects or fund new ventures (e.g., Kickstarter).

• Payment Platforms: Manage online transactions and payments (e.g., PayPal).

• Retail Platforms: Support online shopping and sales (e.g., Amazon).

• Booking Aggregators: Aggregate and manage bookings for various services (e.g., Expedia).

• Content and Review Platforms: Offer content sharing and review services (e.g., Yelp).

• Matching and Social Media Platforms: Connect users based on interests or needs (e.g., LinkedIn, Facebook).

• Communication Platforms: Enable communication through various channels (e.g., Slack).

• Search Platforms: Facilitate information retrieval (e.g., Google). Impact of Digital Platforms on E-Commerce
  Digital platforms have had a transformative impact on e-commerce:

  1. Disintermediation: By removing traditional intermediaries, digital platforms reduce costs and streamline processes. For example, Uber connects drivers and riders directly, eliminating taxi stands.

  2. Uberisation: The concept of 'uberisation' refers to the virtual meeting of buyers and sellers on digital platforms. Services like Upwork facilitate freelance work without traditional HR intermediaries.

  3. Accessibility and Efficiency: Digital platforms provide access to previously costly or time-consuming resources. For instance, GitHub offers a repository of software tools, while app stores like Google Play provide easy access to numerous apps with built-in security measures.

  In essence, digital platforms enable businesses to connect with a global audience, enhance operational efficiency, and deliver more personalized experiences. They leverage cloud computing, AI/ML, and Big Data to create sophisticated ecosystems that reshape how transactions and interactions occur in the digital age.

Digitilisation and Digital Transformation in Businesses

Digital transformation refers to the comprehensive integration of digital technologies into all aspects of business operations. This transformation replaces traditional methods with advanced digital processes, leading to significant changes in how businesses operate and deliver services. Here’s how emerging technologies contribute to digital transformation:

• Cloud Computing: Offers scalable infrastructure and reduces the need for on-premises hardware. Businesses can access vast amounts of data and computational power without managing physical servers.

• Mobile Technology: Enables businesses to reach customers on- the-go, providing services and products through mobile apps and responsive websites.

• Automation: AI and ML facilitate automation of both internal processes (like inventory management) and customer-facing processes (like billing and notifications), leading to increased efficiency and reduced operational costs.

• AI/ML: Enhance decision-making and personalization by analyzing large datasets to uncover insights and predict future trends.

• Big Data: Allows businesses to handle and analyze large volumes of data, improving decision-making and customer insights.

• IoT: Connects devices and sensors to collect real-time data, improving supply chain management and customer interactions.

• Blockchain: Provides secure and transparent transaction records, enhancing trust and reducing fraud.

  Digital transformation has made businesses more agile, responsive, and customer-centric. Companies can now deliver services and products more efficiently, adapt to changing market conditions, and provide personalized experiences at scale.

In conclusion, digital platforms and digital transformation are revolutionizing e-commerce by leveraging emerging technologies to create more efficient, personalized, and scalable business models.